55526 Federal Register / Vol. 71, No. 184 / Friday, September 22, 2006 / Notices 

1The rule also permits the issuer, its principal 

underwriter, its depositor, or its record-keeping 

agent to mail the notice if the custodian bank has 

delegated the mailing of the notice to any of them 

or if the issuer has been permitted to operate 

without a custodian bank by Commission order. See 

17 CFR 270.27f–1. 

1Regulation NMS, adopted by the Commission in 

June 2005, redesignated the national market system 

rules previously adopted under Section 11A of the 

Securities Exchange Act of 1934 (‘‘Exchange Act’’). 

Rule 11Ac1–5 under the Exchange Act was 

redesignated Rule 605 of Regulation NMS, and Rule 

11Ac1–6 under the Exchange Act was redesignated 

Rule 606 of Regulation NMS. No substantive 

amendments were made to Rule 605 and Rule 606 

of Regulation NMS. See Securities Exchange Act 

Release No. 51808 (June 9, 2005), 70 FR 37496 (June 

29, 2005). 

Rule 27f–1 and Form N–27F–1; SEC File 

No. 270–487; OMB Control No. 3235–

0546. 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the Securities 

and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for extension of the 

previously approved collection of 

information discussed below. 

Section 27(f) of the Investment 

Company Act of 1940 (‘‘Act’’) (15 U.S.C. 

80a–27(f)) provides that ‘‘[w]ith respect 

to any periodic payment plan (other 

than a plan under which the amount of 

sales load deducted from any payment 

thereon does not exceed 9 per centum 

of such payment), the custodian bank 

for such plan shall mail to each 

certificate holder, within sixty days after 

the issuance of the certificate, a 

statement of charges to be deducted 

from the projected payments on the 

certificate and a notice of his right of 

withdrawal as specified in this section.’’

Section 27(f) authorizes the 

Commission to ‘‘make rules specifying 

the method, form, and contents of the 

notice required by this subsection.’’

Rule 27f–1 (17 CFR 270.27f–1) under 

the Act, entitled ‘‘Notice of Right of 

Withdrawal Required to be Mailed to 

Periodic Payment Plan Certificate 

Holders and Exemption from Section 

27(f) for Certain Periodic Payment Plan 

Certificates,’’ provides instructions for 

the delivery of the notice required by 

section 27(f). 

Rule 27f–1(d) prescribes Form N–

27F–1 (17 CFR 274.127f–1), which sets 

forth the language that custodian banks 

for periodic payment plans must use in 

informing certificate holders of their 

withdrawal right pursuant to section 

27(f). The instructions to the form 

provide that the notice must be on the 

sender’s letterhead. The Commission 

does not receive a copy of the Form N–

27F–1 notice. 

The Form N–27F–1 notice informs 

certificate holders of their rights in 

connection with the certificates they 

hold. Specifically, it is intended to 

encourage new purchasers of plan 

certificates to reassess the costs and 

benefits of their investment and to 

provide them with an opportunity to 

recover their initial investment without 

penalty. The disclosure assists 

certificate holders in making careful and 

fully informed decisions about whether 

to invest in periodic payment plan 

certificates. 

The frequency with which each of 

these issuers or their representatives 

must file Form N–27F–1 notices varies 

with the number of periodic payment 

plans sold. Commission staff spoke with 

representatives of a number of firms in 

the industry that currently have 

periodic payment plan accounts. Based 

upon these conversations, the staff 

estimates that 3 issuers of periodic 

payment plan certificates send out an 

aggregate of approximately 535 notices 

per year. The staff further estimates that 

all the issuers that send Form N–27F–

1 notices use outside contractors to 

print and distribute the notices, and 

incur no hourly burden. The estimate of 

annual burden hours is made solely for 

the purposes of the Paperwork 

Reduction Act, and is not derived from 

a comprehensive or even a 

representative survey or study of the 

costs of Commission rules and forms. 

Complying with the collection of 

information requirements of Rule 27f–1 

is mandatory for custodian banks of 

periodic payment plans for which the 

sales load deducted from any payment 

exceeds 9 percent of the payment.1 The 

information provided pursuant to Rule 

27f–1 will be provided to third parties 

and, therefore, will not be kept 

confidential. The Commission is seeking 

OMB approval, because an agency may 

not conduct or sponsor, and a person is 

not required to respond to, a collection 

of information unless it displays a 

currently valid control number. 

General comments regarding the 

above information should be directed to 

the following persons: (i) Desk Officer 

for the Securities and Exchange 

Commission, Office of Information and 

Regulatory Affairs, Office of 

Management and Budget, Room 10102, 

New Executive Office Building, 

Washington, DC 20503 or by e-mail to: 

David_Rostker@omb.eop.gov; and (ii) R. 

Corey Booth, Director/Chief Information 

Officer, Securities and Exchange 

Commission, c/o Shirley Martinson, 

6432 General Green Way, Alexandria, 

Virginia 22312, or by e-mail to: 

PRA_Mailbox@sec.gov. Comments must 

be submitted to OMB within 30 days of 

this notice. 

Dated: September 11, 2006. 

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 06–7999 Filed 9–21–06; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of Filings and 

Information Services, Washington, DC 

20549. 

Extension: 

Rule 605 of Regulation NMS, SEC File No. 

270–488, OMB Control No. 3235–0542. 

Rule 606 of Regulation NMS, SEC File 

No. 270–489, OMB Control No. 3235–

0541. 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the Securities 

and Exchange Commission 

(‘‘Commission’’) intends to submit to 

the Office of Management and Budget 

(‘‘OMB’’) a request for extension of the 

previously approved collection of 

information discussed below. 

Rule 605 of Regulation NMS (‘‘Rule 

605’’) (17 CFR 242.605),1 f/k/a Rule 

11Ac1–5 (17 CFR.240.11Ac1–5), 

requires market centers to make 

available to the public monthly order 

execution reports in electronic form. 

The Commission believes that many 

market centers retain most, if not all, the 

underlying raw data necessary to 

generate these reports in electronic 

format. Once the necessary data is 

collected, market centers could either 

program their systems to generate the 

statistics and reports, or transfer the 

data to a service provider (such as an 

independent company in the business of 

preparing such reports or a selfregulatory organization (‘‘SRO’’)) that 

would generate the statistics and 

reports. 

The collection of information 

obligations of Rule 605 apply to all 

market centers that receive covered 

orders in national market system 

securities. The Commission estimates 

that approximately 302 market centers 

are subject to the collection of 

information obligations of Rule 605. 

Each of these respondents is required to 

respond to the collection of information 

on a monthly basis. 

The Commission staff estimates that, 

on average, Rule 605 causes respondents 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 71, No. 184 / Friday, September 22, 2006 / Notices 55527 

to spend 6 hours per month in 

additional time to collect the data 

necessary to generate the reports, or 72 

hours per year. With an estimated 302 

market centers subject to Rule 605, the 

total data collection cost to comply with 

the monthly reporting requirement is 

estimated to be 21,744 hours per year. 

Rule 606 of Regulation NMS (‘‘Rule 

606’’) (17 CFR 242.606), f/k/a Rule 

11Ac1–6 (17 CFR 240.11Ac1–6), 

requires broker-dealers to prepare and 

disseminate quarterly order routing 

reports. Much of the information needed 

to generate these reports already should 

be collected by broker-dealers in 

connection with their periodic 

evaluations of their order routing 

practices. Broker-dealers must conduct 

such evaluations to fulfill the duty of 

best execution that they owe their 

customers. 

The collection of information 

obligations of Rule 606 applies to 

broker-dealers that route non-directed 

customer orders in covered securities. 

The Commission estimates that out of 

the currently 3120 broker-dealers that 

are subject to the collection of 

information obligations of Rule 606, 

clearing brokers bear a substantial 

portion of the burden of complying with 

the reporting and recordkeeping 

requirements of Rule 606 on behalf of 

small to mid-sized introducing firms. 

There currently are approximately 567 

clearing brokers. In addition, there are 

approximately 1479 introducing brokers 

that receive funds or securities from 

their customers. Because at least some 

of these firms also may have greater 

involvement in determining where 

customer orders are routed for 

execution, they have been included, 

along with clearing brokers, in 

estimating the total burden of Rule 606. 

The Commission staff estimates that 

each firm significantly involved in order 

routing practices incurs an average 

burden of 40 hours to prepare and 

disseminate a quarterly report required 

by Rule 606, or a burden of 160 hours 

per year. With an estimated 2046 

broker-dealers significantly involved in 

order routing practices, the total burden 

per year to comply with the quarterly 

reporting requirement in Rule 606 is 

estimated to be 327,360 hours. 

Rule 606 requires broker-dealers to 

respond to individual customer requests 

for information on orders handled by 

the broker-dealer for that customer. 

Clearing brokers generally bear the 

burden of responding to these requests. 

The Commission staff estimates that an 

average clearing broker incurs an annual 

burden of 400 hours (2000 responses × 

0.2 hours/response) to prepare, 

disseminate, and retain responses to 

customers required by Rule 606. With 

an estimated 567 clearing brokers 

subject to Rule 606, the total burden per 

year to comply with the customer 

response requirement in Rule 606 is 

estimated to be 226,800 hours. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden of the collection of 

information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology. Consideration will be given 

to comments and suggestions submitted 

in writing within 60 days of this 

publication. 

Please direct your written comments 

to R. Corey Booth, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Shirley 

Martinson, 6432 General Green Way, 

Alexandria, Virginia 22312, or send an 

e-mail to: PRA_Mailbox@sec.gov. 

Comments must be submitted within 60 

days of this notice. 

Dated: September 14, 2006. 

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 06–8000 Filed 9–21–06; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

27484; 812–13171] 

Claymore Securities, Inc. and 

Claymore Securities Defined 

Portfolios, Notice of Application 

September 18, 2006. 

AGENCY: Securities and Exchange 

Commission (‘‘Commission’’). 

ACTION: Notice of application for an 

order under section 12(d)(1)(J) of the 

Investment Company Act of 1940 

(‘‘Act’’) for an exemption from sections 

12(d)(1)(A), (B) and (C) of the Act and 

under sections 6(c) and 17(b) of the Act 

for an exemption from section 17(a) of 

the Act. 

SUMMARY OF THE APPLICATION: Claymore 

Securities, Inc. (the ‘‘Depositor’’), and 

Claymore Securities Defined Portfolios 

(the ‘‘Trust’’), on behalf of itself and any 

existing and future series, and any 

future registered unit investment trust 

(‘‘UIT’’) sponsored by the Depositor (or 

an entity controlling, controlled by or 

under common control with the 

Depositor) and their respective series 

(the future UITs, together with the 

Trust, are collectively the ‘‘Trusts,’’ the 

series of the Trusts are the ‘‘Series,’’ and 

the Trusts together with the Depositor 

are collectively, the (‘‘Applicants’’), 

request an order to permit each Series 

to acquire shares of registered 

investment companies or series thereof 

(the ‘‘Funds’’) both within and outside 

the same group of investment 

companies. 

APPLICANTS: The Depositor and the 

Trust. 

FILING DATES: The application was filed 

on February 23, 2005 and amended on 

June 28, 2006 and September 1, 2006. 

HEARING OR NOTIFICATION OF HEARING: An 

order granting the application will be 

issued unless the Commission orders a 

hearing. Interested persons may request 

a hearing by writing to the 

Commission’s Secretary and serving 

applicants with a copy of the request, 

personally or by mail. Hearing requests 

should be received by the Commission 

by 5:30 p.m. on October 24, 2006 and 

should be accompanied by proof of 

service on applicants in the form of an 

affidavit or, for lawyers, a certificate of 

service. Hearing requests should state 

the nature of the writer’s interest, the 

reason for the request, and the issues 

contested. Persons who wish to be 

notified of a hearing may request 

notification by writing to the 

Commission’s Secretary. 

ADDRESSES: Secretary, U.S. Securities 

and Exchange Commission, 100 F 

Street, NE., Washington, DC 20549–

10901; Applicants, 2455 Corporate West 

Drive, Lisle, Illinois 60532. 

FOR FURTHER INFORMATION CONTACT: 

Deepak T. Pai, Senior Counsel, at (202) 

551–6876, or Nadya Roytblat, Assistant 

Director at (202) 551–6821 (Division of 

Investment Management, Office of 

Investment Company Regulation). 

SUPPLEMENTARY INFORMATION: The 

following is a summary of the 

application. The complete application 

may be obtained for a fee at the Public 

Reference Desk, U.S. Securities and 

Exchange Commission, 100 F Street, 

NE., Washington DC 20549–0102, tel: 

(202) 551–5850. 

Applicants’ Representations 

1. The Trust is a UIT registered under 

the Act. Each Series will be a series of 

a Trust and will offer units for sale to 


sroberts on PROD1PC70 with NOTICES